ADU

MASTERS OF BUSINESS
ADMINISTRATION (MBA)

PROJECT ANALYSIS
AND MANAGEMENT

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 PART 5

PROJECT
IMPLEMENTATION

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 Content
 Forms of project organization
 Contract administration
 Team Building (human resource)
 Conflict resolution

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 1. Project Implementation

 This stage involves transforming the project

proposal into the actual project or reality.
 Putting into practice the plans that had earlier
on been appraised following the already laid
down time table or work plan.
 It leads to the realization of project outputs
and immediate objectives.

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 1. Project Implementation (cont’d…)

 Project implementation refers to the

execution of all tasks that are
necessary to make the project
operational.
 The project implementation stage
brings the project from the feasibility
study stage to the execution stage.
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 1. Project Implementation (cont’d…)

 The responsibility for implementing

the project is usually entrusted with an
implementation team.
 The team comprises of a number of
experts in various fields such as
finance, technology, law and
engineering, etc.
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 1. Project Implementation (cont’d…)
 Once the decision for implementing the project is
taken, it is necessary that the preparation for
starting the project is made.
 The preparation includes:
 Obtaining government approvals,
 Fulfilling legal processes,
 Collecting and planning finance,
 Construction and installation,
 Supply of materials,
 Making the organizational set up
7  Acquisition of land and technology and so on.
 Pre-requisites for successful
project implementation
 Adequate formation
 sound project organization
 proper implementation planning
 timely available of funds
 judicious equipment tendering and
procurement
 efficient contract management

8  effective monitoring, etc

 Forms of Project Organization

 Functional organization
 Projectized Organization
 Matrix organization

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 A. Functional structure:

 In this type of organizational structure, the

division of work is the most important part.
Jobs and activities are grouped together.
 Staff can specialize in a particular
business area such as production or
marketing and follow well-defined career
paths.
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 B. Projectized Organization
 Projectized organization is an organizational structure that
focuses on projects. Projectized organizations derive their
name from the fact that they are built to do project work.
The project organization structure supports the
completion of project activities and provides an adequate
level of oversight, review and contribution from necessary
parties.
 Project Managers are given both the authority, and the
responsibility, to manage virtually all aspects of the
project. They have the same authority as functional
managers, and project team members are the project
12 managers’ subordinates.
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 C. Matrix organizations
 Matrix organization is a blend of functional and project
organizations. It is an attempt to combine functional and
project structures in order to take advantage of the
strengths of both structures. In matrix organization,
project team members report to both a functional manager
and a project manager.
 The most common form is that team members have
connected to project managers by dotted lines and
connected to their functional managers by solid lines.
Since team members report to multiple managers, a clear
14 communications plan is essential.
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 2. Contract Administration

 A contract is an agreement enforceable

by law, and is made between two or more
parties.
 Contracting is the process of
establishing a relation between the owner
and the contractors to execute the project
work

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 Contents of a contract
 Name and address of both the parties,
 Subject of the agreement,
 Deadlines for the different stages of fulfillment of
the agreement,
 Financial aspects and other necessary
conditions such as violation of contract etc.

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 Approaches to contracting:
Contracting total responsibility for one
contractor
Dividing the project and contracting it to
suitable suppliers and contractors.
Accomplish a portion of the work yourself
and contract out the balance to one or
more agencies.

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 A contracting schedule contains:

 The work code

 Work packages; volume of main
activities and budget estimate
 Starting and finishing dates and
 The names of people who
prepared the bid documents and
19 awarded the contract.
 Contracting procedures:
 Governments and different institiutions have
their own procedures with clear objectives to
acheive:
 To elicit competitive bids
 To provide equal opportunity and equal
treatment to all eligible tenderers
 To accept the tender at the lowest cost

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 Steps in contracting :

1. Work packaging and scheduling

 Specialized Activity Packages like
construction, civil engineering works, painting
etc.
 Unit packages like administration building, by
- product plant, steel melting shop etc.
 The starting and finishing time of each
individual package
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 Steps in contracting : (Cont‘d...)

2. Preparation of Tender Documents

Instructionto tenderers
Model Form of tender
Drawings and specifications
Schedule of Rates
General conditions of contract
Special conditions of contract
22 Specimen of Bank guarantee
 Steps in contracting : (Cont‘d...)

3. Determination of Contractor's Qualifications

World Bank's criteria:
Factors Points
Organization and Planning 10
Management Structure
General Implementation programme
Plans for subcontracting
History of Default
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 Steps in contracting : (Cont‘d...)

Personnel 15
 Experience/ qualification of key personnel
 Adequacy of specialized staffing

Major plant and equipment 15

Adequacy
Age/condition
Source of availability
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 Steps in contracting : (Cont‘d...)

Experience 30
 Technical references
 Value of completed contracts of similar type
 Average percent of work under subcontractor
Financial Condition 30
 Bank reference
 Average annual turnover
 Working capital
 Quick Ratio

25  Value of contracts completed in last 5 years

 Steps in contracting : (Cont‘d...)

4. Tender Invitation
 Sending equerry letters for short lists or
 Advertising openly

5. Tender submission
 Tender is usually submitted in sealed envelops
 The required number of copies together with
documents will be submitted by tenderers on or
before the last date for submission
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 Steps in contracting : (Cont‘d...)

6. Tender Opening
 Tenders should be opened in the
presence of tenderers or their
authorized representatives unless
required
7. Evaluation and recommendation
 Costs, quality, quantity and other
technical specification
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 Steps in contracting : (Cont‘d...)

8. Award of contract
Lowest price
Negotation

9. Signing of Agreement with

detailed contract conditions.
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 3. Building Project Team

 Team building can be defined as the:

"process of planning and encouraging
working practices that are effective and
which minimize the difficulties that
obstruct the team's competence and
resourcefulness.”

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 3. Building Project Team (Cont’d…)

 The benefits of team building are:

 Effective use of time,
 improved job satisfaction and
 improved self esteem and well being
 The team building process is based on the
type of the project, the leadership style of
the project manager and on the type of
individuals involved in the team
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 Ground rules for an effective
team building:
• Clear purpose and Transparency
• Effective leadership
• Adequate financial and human resources
• Awareness and full participation
• Skills, experiences, ideas and information
• Information sharing and feedback
• Commitment and trust among team members
• The ability of developing synergy in the team

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 High-performance Teams
Participative
Leadership Aligned on
Shared
Purpose
Responsibility

Attributes of High
Future
high-performance Communication
Focused
Teams

Rapid Focused on
Response Task
Creative
Talents
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 4. CONFLICT MANAGEMENT

“Working together isn’t always easy”

• What should we know about dealing with conflict?

• How can we mange it successfully?
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 Conflict Management

 Conflict is the contest between people with

opposing needs, ideas, beliefs, values, or goals.
 Conflict can exist whenever two or more people
get together to complete their tasks and
responsibilities.
 It occurs within all organizations. It is an
important element of an organization’s
development, and can serve as a means to
build organizational capacity, and to generate
creative ideas.
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 Views on Conflict

Traditional
View

Human
Relations Interactionist
View View
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 Views on Conflict

1. The traditional view

 Conflict is unnatural and undesirable
 The view that all conflict is bad
 Conflict is negative and abnormal: The normal
conditions in the organization requires
harmony
 Conflict is equated with violence and
destructive, irrationality
36  Thus conflict must be avoided.
 Views on Conflict

2. The Human Relations View

 Conflict is a natural occurrence and is
inevitable
 Conflict may benefit a group performance
 This school of thought advocates
‘acceptance of conflict’

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 Views on Conflict

3. The Inter-actionist view

 conflict is a positive force and is necessary for
effective performance
 Conflict is inevitable
 Some level of conflict is absolutely necessary for
groups /organizations to perform effectively. Thus
conflict may be encouraged
 ‘when two people--- always agree, one of them is
unnecessary’ Brazilian Saying
38 (“It’s dumb if we all agree.”)
 Question for reflections

 Discuss the current views of your

organization management/leaders and
employees towards conflict.
 What do you recommend?

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 The five conflict handling modes

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 Project implementation planning

 Comprehensive project planning covers the

following:
 Planning the project work
 Planning the manpower and
organization
 Planning the money
 Planning the information system

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 Project objectives and policies

 Often the focus of project planning is on

questions like who does what and when.
 Before such operational planning is done,
the objectives and policies guiding the
project planning exercise must be
articulated.

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 Work breakdown structure (WBS)

 It represents a systematic and logical

breakdown of the project into its component
parts.
 It is constructed by dividing the project in to its
major parts, with each of these being further
divided in to sub parts.
 This is continued till a breakdown is done in
terms of manageable units of work for which
responsibility can be defined.
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 Work breakdown structure (WBS)

 Thus, the work breakdown structure helps in:

 Effective planning by dividing the work in
to manageable elements which can be
planned, budgeted and controlled.
 Assignment of responsibility for work
elements to project personnel and outside
agencies.
 Development of control and
information system.
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 WBS and project organizations

 The project organization represents

formally how the project personnel and
outside agencies are going to work.
 The WBS defines the works to be done in
a detailed manner.
manner
 To assign responsibility for the tasks to be
done, the WBS has to be integrated with
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the project organization structure.
Any Questions